I filed my tax return and then got a 1099 Misc for $600 in self employment a week later. What are my options?
Hi,my name is Anne,I did the following:
Q&A: I filed my tax return and then got a 1099 Misc for 0 in self employment a week later. What are my options?
What should I do? I’m salaried and this was the only self-employment money I made for 2009. Is it a big deal that I forgot? What would penalties be?
The following is the answer:
Answer by ElDub
you can file an amended return and pay the little bit of tax.
If you don’t it’s possible that 3 or 4 years from now it will pop up and then you have to pay the little bit of tax PLUS several hundred $$ in late penalties and interest.
Answer by Bostonian In MO
You must file an amended return showing that income and pay the added tax. There won’t be any penalties as long as you do that by April 15th.
If you wait for the IRS to catch it — and they will, in 6 to 18 months or so — they will tack on penalties and interest for late payment.
Answer by Jennifer W
I wouldn’t worry about the 0. I just got a notice from my state that my 2006 taxes were incorrect and I owed them a little bit more. It was like -and the interest wasn’t much at all.
Answer by Jss
If you did not report all your income on your tax return, you have to file amended tax return Form 1040X pay the tax due with interest. You should not hurry to file the tax return; take your time and make sure the refurn is correct. File on or before April 15, 2010. If you do not file amended tax return, then after about 1 year, you will get a tax bill from IRS. It will include interest and penalty amount that is you will pay much more than you actually owe.
1099-misc income: You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040).
/With 1099-misc you will end up paying about 6.2% more taxes as compared to W-2 employee. The benefit is that if you have job related expenses, you can deduct them.
Answer by jack bauer
I would file a 1040x, amended return because you could list many expenses to offset the 0; like telephone and travel @ .55/mile, supplies, computer expense. Look at a schedule “c”
download from irs.gov
What do you think? Answer below!
